Understanding Mortgage Rates | dripp inc | Home Equity | Refinancing and Remortgage Guide

Good Afternoon,

All we can say to these dropping mortgage rates is welcome back!  We’ve been waiting for you!  We are seeing another drop again today.  If the market continues like this into tomorrow homeowners across the country will have the window of opportunity they have been waiting for to refinance into a better mortgage!

Here’s the inside Dripp…

There is good news and bad news to report.  The 2nd Quarter Productivity and Costs Index came in much higher than expected, which should help the stock market and hurt bonds.  With that logic, interest rates should increase.  But the weekly unemployment figures clearly overshadowed this “good news.”  New unemployment claims climbed much more than expected.  There were 444,000 new claims last week. 

We are still waiting for tomorrow’s most important MONTHLY employment situation. We’re thinking that today’s gloomy unemployment figure is the precursor to tomorrow’s more detailed data and investors have caught wind of this, so the stock market is really hurting right now.  Fortunately and unfortunately, this is helping mortgage rates today.  We may see an even bigger drop tomorrow if the employment situation is really bad. 

So do you lock in an interest rate?

It’s very tempting right now and if you are the safe type, you will benefit from how low the rates have already dropped by locking.  However, we suggest waiting until tomorrow. 

Simply Put: New unemployment claims came in higher than expected today and caused interest rates to drop for the third straight day.  The bigger monthly employment situation will be released tomorrow and we should not be expecting much better news.  This will help push down mortgage rates even more.  Of course, anything can happen, so stay tuned by being ready to lock.  Check out our new Mortgage Tip here explaining the best way to take advantage of the lowest rate! 

* We have also added a new CHAT feature click here to connect with me immediately if you want to see how low your mortgage rate can go!  You can also request a quick quote by filling out our small form here.